I can toss the column into (D), D or 1 and it will go just fine into gear...same for reverse. But it wont shift out of 1st gear when you go forward...just goes straight to redline.

lol, I can get it up to about 28-32mph in first though.

Ok, further diagnosis:

If left in 1st gear ( position 1 on indicator) the engine will stay tached at whatever rpm I'm at for the speed.

If I then put it in D position, it will cost and the rpm will actually drop on the engine to about what you would expect it to be at for D at the speed I'm cruising at...however, it will free tach until it reaches the rpm needed for 1st gear to catch.

Same thing for (D) position, rpm will drop to what you'd expect until you rev it to match the rpm needed for 1st.

Is this an internal transmission problem or some sort of electronic problem?? I dont want to pull this transmission out if I dont have to.

Your tranny has had it, not electrical. Had nearly same exact problem. Good luck, btw, the 97 tranny will do just fine, just make sure the tranny's are the same. same #'s so the computer will work with it. #'s are stamped on the tanny pan. ax4n for ex.

Sorry didn't answer this question for you before... The best way to change tranny is to drop out the cage...meaning the engine and tranny are mounted on the same subframe. In a nut shell...Disconnect everything electrical and fuel lines from the body. Pull drive axels from the knuckes ,and four bolts and it's out.